Real Estate Math
A property manager charges 8% of gross collected rents for management. The building collects $22,000/month in rent. What is the annual management fee?
A$1,760
B$21,120✓ Correct
C$22,000
D$17,600
Explanation
Monthly management fee = $22,000 × 8% = $1,760. Annual management fee = $1,760 × 12 = $21,120. To solve this, multiply the relevant values: $22,000 at 8%.. The correct answer is $21,120.. This is a common calculation on the New York real estate exam.
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